Yearly Rate Of Return Method
What is ‘Yearly Rate Of Return Method ‘
More commonly referred to as annual percentage rate. It is the interest rate earned on a fund throughout an entire year. The yearly rate of return is calculated by taking the amount of money gained or lost at the end of the year and dividing it by the initial investment at the beginning of the year. This method is also referred to as the annual rate of return or the nominal annual rate.
Explaining ‘Yearly Rate Of Return Method ‘
Calculated by:
Yearly Rate of Return = End of the year value – beginning of the year value
beginning of the year value
The yearly rate of return method give the owners an idea of how their investment in the company is doing year over year.
Further Reading
- The rate of return to the HighScope Perry Preschool Program – www.sciencedirect.com [PDF]
- PE ratios, PEG ratios, and estimating the implied expected rate of return on equity capital – meridian.allenpress.com [PDF]
- The return to capital in China – www.nber.org [PDF]
- The inflation-hedging characteristics of real and financial assets in Hong Kong – aresjournals.org [PDF]
- Nonparametric prediction of stock returns based on yearly data: The long-term view – www.sciencedirect.com [PDF]
- Ranking transport projects by their socioeconomic value or financial internal rate of return? – www.sciencedirect.com [PDF]
- Comprehensive assessment of firm financial performance using financial ratios and linguistic analysis of annual reports – www.ceeol.com [PDF]
- Surveying stock market forecasting techniques–Part II: Soft computing methods – www.sciencedirect.com [PDF]
- Real estate returns: a comparison with other investments – onlinelibrary.wiley.com [PDF]
